CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 97 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 97
Topic #: 2

[All CIMAPRA17-BA1-1 Questions]

Larger companies may benefit from economies of scale due to which THREE of the following?

ALarger companies may gain greater market share through advertising

BLarger companies may spread their fixed research and development costs over a larger amount of output

CLarger companies may more easily access public subsidies

DLarger companies may obtain lower interest rates on their loans.

ELarger companies may purchase inputs in bulk at lower unit prices

FLarger companies may benefit from greater customer loyalty

Show Suggested Answer

Suggested Answer: C, D, E

by Teri at Sep 18, 2024, 01:00 AM

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Dierdre

8 months ago

This is a no-brainer. B, E, and F are the way to go. Bigger is better, am I right? *wink wink*

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Diane

8 months ago

Is this a trick question? I'm putting down B, D, and E. Those seem like the obvious choices to me. Although, I guess 'larger' could also mean 'fatter', in which case D might not apply. *chuckles*

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Stephaine

7 months ago

Yeah, I would go with B, D, and E as well. They seem like the most practical advantages for larger companies.

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Kristofer

8 months ago

I agree, those options seem like the most logical choices for economies of scale benefits.

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Carry

8 months ago

I think you're on the right track. B, D, and E all make sense for larger companies.

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Albina

9 months ago

Hmm, I'd say B, E, and F. Economies of scale through R&D, bulk purchasing, and customer loyalty. Can't go wrong with that!

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Veronika

8 months ago

Customer loyalty is key for larger companies to maintain their economies of scale.

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Dottie

8 months ago

Bulk purchasing at lower unit prices is a smart move for larger companies to benefit from.

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Benton

8 months ago

I agree, spreading R&D costs over more output can definitely lead to economies of scale.

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Kendra

9 months ago

I'm going with A, B, and E. Advertising, R&D, and bulk buying - that's the winning combination for sure.

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Carmelina

7 months ago

Customer loyalty is important too, but I think A, B, and E are the top benefits.

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Moon

7 months ago

Bulk buying definitely helps in getting lower unit prices for inputs.

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Isadora

8 months ago

Spreading research and development costs over a larger output makes sense.

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Tamesha

8 months ago

I agree, advertising can really help larger companies gain market share.

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Sharen

9 months ago

I also think that larger companies benefit from economies of scale by purchasing inputs in bulk at lower unit prices. It helps them save money and increase their profit margins.

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Linn

9 months ago

I agree with Jacqueline. It makes sense that larger companies can reduce their costs per unit by producing more.

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Jacqueline

9 months ago

I think larger companies benefit from economies of scale by spreading their fixed research and development costs over a larger amount of output.

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Tegan

9 months ago

I think the answer is B, D, and E. Spreading R&D costs, lower interest rates, and bulk purchasing definitely give larger companies an advantage.

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Cordelia

9 months ago

Lower interest rates on loans and bulk purchasing at lower prices are also key advantages for larger companies.

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Lakeesha

9 months ago

I agree, spreading R&D costs over more output can definitely help larger companies.

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